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Arla Foods' subsidiaries - strong performance

Press Release   •   Dec 10, 2002 16:30 CET

Overall, the Arla Foods Group’s subsidiaries showed a strong performance in the 2001/2002 financial year, Managing Director Jens Bigum told the Group’s Board of Representatives at their meeting in Århus, Denmark, on Tuesday.

Within the juice and fruit juice segment, Rynkeby Foods and JO Bolaget both performed well and the two companies now hold a 60% market share of the Swedish and Danish markets, making them the largest juice producers in the Nordic area. In February 2002, Rynkeby and JO Bolaget began to streamline a range of purchasing, production and development functions as well as establishing joint brands.

De Danske Mejeriers Fællesindkøb (Danish Dairy Suppliers) saw a 12% rise in turnover, from DKK 588 million in 2000/2001 to DKK 656 million in 2001/2002. This is above expectations.

Danapak posted a loss on ordinary operations of DKK – 22 million. Since total turnover for the year, DKK 771 milion, was significantly affected by structural changes within the group, the result is not directly comparable to last year’s. During the year Danapak’s flexible packaging division became part of a joint venture with the Austrian Teich AG. Danapak also acquired a majority stake in the cartons company Westergaard & Philipson A/S, establishing itself as market leader in the Danish market. Danapak will maintain a strategy of growth and further develop its position as market leader within the Danish cartons sector. In view of the company’s substantial organisational changes a modest profit is expected for the current financial year.

With an increase in sales of 7%, Semper AB achieved a turnover of SEK 1,055 million. During the year Semper strengthened its position as the market leader for baby food in Sweden. Semper also saw a rise in exports, primarily to Russia.

Frödinge Dairy and Medipharm also performed well, achieving results slightly above the budget.